Significant Events

Coronavirus Pandemic

Despite the ongoing coronavirus pandemic, the growing availability of vaccines and the possibilities for combating the pandemic are having a positive impact on the global economy. In parallel, we are observing a significant recovery in demand compared with the prior-year period. The steps taken by Covestro early on last year to protect the health of all employees will stay in place, so extensive health, safety, and hygiene measures are still in effect at our sites. Covestro supports employee access to vaccinations against the coronavirus, including through cooperation with company health facilities. Depending on the local situation in each case, some staff, particularly employees in administrative departments, continue to work from home. Production at our sites was not affected by the pandemic in the first half of 2021.

Covestro is monitoring the development of the coronavirus pandemic worldwide on an ongoing basis to ensure that we can react quickly when necessary. Existing measures are modified and continually expanded as required in line with recommendations and instructions issued by the relevant governments and committees of experts.

Other Events

On February 25, 2021, Covestro signed an agreement on the sale of its 51% equity investment in subsidiary Pearl Covestro Polyurethane Systems FZCO, which operates the systems house business in Dubai (United Arab Emirates), to current co-shareholder Pearl Industries Overseas Ltd. The sale is part of an ongoing effort to optimize the portfolio and represents another step toward strategically refocusing the Polyurethanes segment. The transaction was completed on July 26, 2021, and generated proceeds of USD 8 million (about 7 Mio. €).
See note 11 “Events after the End of the Reporting Period” in the Notes to the Consolidated Interim Financial Statements.

On April 1, 2021, Covestro completed the acquisition of the Resins & Functional Materials (RFM) business from Koninklijke DSM N.V., Heerlen (Netherlands). A total of 27 RFM companies were fully consolidated for the first time on that date. Completing the RFM acquisition makes Covestro one of the world’s leading suppliers of sustainable coating resins.
See note 4 “Scope of Consolidation” in the Notes to the Consolidated Interim Financial Statements.

In keeping with the first chapter of the strategy – “Become the best of who we are” – the Group restructured its organization as of July 1, 2021. The Group’s three reportable segments to date (Polyurethanes, Polycarbonates and Coatings, Adhesives, Specialties) will be replaced in the future with two new reportable segments: Performance Materials and Solutions & Specialties. The Performance Materials segment concentrates on reliably delivering standard products at competitive market prices. The focus of the Solutions & Specialties segment is on complex products with a high pace of innovation, which Covestro combines with application technology services. Covestro’s first report containing the new segment structure will be issued in the third quarter of 2021.
See note 11 “Events after the End of the Reporting Period” in the Notes to the Consolidated Interim Financial Statements.